How to Afford a Home on Your Own

How to Afford a Home on Your Own

By Abby Badach Doyle

Owning a home is possible, even without financial help from family. By setting clear goals, building a strong support team, exploring assistance programs, and considering creative financing options, you can take control of your homeownership journey.

A Path to Homeownership Without a Financial Head Start

Saving for a first home can feel overwhelming, especially when it seems like others are getting a financial boost from family. But most first-time buyers don’t rely on gifts. According to the National Association of Realtors®, only 25% of first-time buyers receive financial help from family or friends.

If you don’t have gift money, you’re not alone. Here’s how to make homeownership happen.

Shift Your Mindset

Between rising home prices and mortgage rates, it’s easy to feel discouraged. Social media can amplify these feelings, making it seem like others have an easier path.

Financial therapist Rahkim Sabree emphasizes focusing on your own journey. "Social media only shows the highlight reel. You don’t see the debt, sacrifices, or long-term financial impact behind someone’s home purchase," he explains.

Instead of comparing yourself to others, focus on what you can control. Start by using an online calculator to determine what you can afford, then create a plan to move forward.

Build Your Homebuying Team

You may not need financial help from family, but you do need a strong support system:

• Start with a Housing Counselor: A HUD-certified counselor can provide guidance, particularly if you have credit challenges or past financial setbacks. Many services are free or low-cost.

• Work with an Experienced Buyer’s Agent: A knowledgeable real estate agent can help you navigate the market, identify opportunities, and negotiate the best deal.

• Compare Lenders: Get pre-approved with at least three lenders to find the best interest rates and loan terms. You might also consider working with a mortgage broker who can shop for the best deal on your behalf.

Explore Assistance Programs

There are grants and assistance programs designed to help first-time buyers. Don’t leave money on the table—research options available through:

• State housing agencies

• Local governments

• Nonprofits

• Employers or labor unions

Many programs cater to first-time buyers with incomes below the area median, but some offer aid to repeat buyers or higher earners as well.

Arica Rucker, broker-owner of Century 21 Rucker Real Estate, has helped many buyers who assumed they needed family gifts. "They’re in disbelief when they find out about assistance programs," she says. "But then we run into the reality of them not having money saved for upfront expenses."

Even with down payment help, you’ll still need cash for upfront costs like an earnest money deposit, home inspection, and moving expenses.

Consider Creative Financing Options

To make homeownership more affordable, explore alternative strategies:

• Short Sales & Foreclosures: These properties can offer lower prices, but they often require patience and extra work.

• House Hacking: Buying a duplex or multi-unit property and renting out part of it can offset mortgage costs.

• Alternative Loan Programs: Some buyers explore unconventional loan structures, though they often come with risks.

If you’re considering borrowing from a 401(k) or other retirement funds, consult a financial advisor to weigh the pros and cons.

Stay Focused on Your Goals

Gift money can be helpful, but it doesn’t guarantee a smoother path. Inheritances may come with emotional weight, and financial gifts from relatives can bring complicated expectations.

Instead, focus on what you can control—your savings strategy and financial discipline.

"Get a plan, write it down, make it specific," Rucker advises.

When the process feels overwhelming, remember to be patient and show yourself grace. Sabree suggests grounding yourself in the present moment: "Make sure you can feel the floor beneath your feet."

You haven’t missed out—you’re just getting started. Homeownership is within reach, and with the right plan, you can achieve it on your terms.